The Board of Directors of Gascogne, gathered on March 19 March 2014 under the chairmanship of Frédéric Doulcet, approved the accounts for the year 2013. Audit procedures on the consolidated accounts have been completed. The report certification report is being issued. In accordance with IFRS 5, the contributions sites sold or held for sale are included in the results of operations held for sale.

2013 Financial Position: Turnover €418.3 M; EBITDA (1) €10.0 M; EBIT €-4.0 M; Operating income of €-42.7 M; Financial income €-7.5 M; Profit before tax €50.3 M; Net income from continuing operations €-54.5 M; Net income from activities held for sale €-1.2 M; Consolidated net income €-55.7 M; EBITDA: operating income + depreciation + Net provisions and impairment of operating grants.

In a still challenging economic environment, revenue from continuing operations amounted to € 418.3 million, down 0.3% compared to 2012. This change includes loss of business revenue estimated at €3 M following the technical incident stationery Mimizan, which stopped production of pulp for 1 month (from 10 December 2013 to 10 January 2014). Neutralizing this impact, the annual sales have recorded a slight increase of 0.4%.

The activities, growth rates are recorded in the Paper & Complexes Branches respectively +2.6% and +3.3%, helped offset the cyclical decline of Sack Branch (-6.3%). Wood products Branch displays a figure virtually unchanged.

In the results of the group:

• EBITDA fell sharply to €10 million in 2013 (against €18.5 million in 2012). Besides the impact of the order of €3.3 million associated with the technical incident from stationery Mimizan and start-up costs of the new line of Dax for €1 million, the Group was affected in 2013 by the impact of the rising price of wood around €2.3 million combined with a decrease in the use of "wood storms." All additional operational costs could be passed immediately in the sale price.

• Operating income was a loss of €-4.0m, down only €2.8 million, a decrease of €6.7 million in depreciation and amortization costs which more than offset the sharp drop in EBITDA.

• Operating profit of €-42.7 million includes an outstanding book of € 35 million, with no impact on cash. In accordance with IFRS and taking into account the deterioration of the macro-economic and economic performance of its activities Paper and Wood environment, the Group has adjusted the value of its assets in the context of impairment tests (comparison between the value placed on the asset and the value in use made of discounted future cash flows).


• The financial result amounted to €7.5 million, an improvement of €1.9 million compared to 2012 (€-9.4 million) due to lower financial expense of €0.6 million, of an improvement of €0.7 million of foreign exchange gains and a decrease in other financial expenses of € 0.6 million (related to the interests of fine Brussels).

• After depreciation of €3.8 million of previously capitalized deficits, the corporate income tax amounted to € -3.7 million.

• Net income from continuing operations remains heavily in deficit €-53.9 M against €-78.7 million in 2012.

• Wood Activity: with lower results in a still difficult economic environment, the Wood Branch was able to maintain its sales very close to that of the previous fiscal year at €80.9 million  in 2013 against €81.2 million in 2012 (-0.3%). The increase in sales of sawn timber and related machined to industrial markets (€4.2 million) associated with the development of wood energy (€2.4 M) and market activity of Walls Wood Frame (+€ 0.7 million) adjusts the recorded segments on the interior back (€ 7.5 million) due mainly to die listings advertised for an amount of approximately €5 million. Current operating income amounted to €2.3 million against €-4.1 million at 31 December 2012.

The Branch benefits includes the significant decrease in depreciation expenses which more than offset the impact of additional costs and materials down selling price. In the extension of 2012, investments were limited. Destocking of wood under continued spraying of €11.2 million which were added €4.4 M additional flow of finished goods inventory. Given these elements, the Wood Division generated in 2013 cash flow from operating activities of €10.0 million and cash flow after investment of €2.7 million.